DealRoom vs. FirmRoom for M&A

DealRoom vs. FirmRoom: Which platform is right for your business?

dealroom vs firmroom for M&A

At Day 1, we’ve launched a new stand-alone, enterprise-grade data room based on our successful project management platform, DealRoom. 

Both tools provide businesses with a centralized, secure, and transparent work location that can help them become more productive, methodical, and efficient.

The following are key points of comparison to help you determine which data storage management system will best fit your needs:

DealRoom is known for transforming the world of M&A by cleaning up the process of due diligence. 

 DealRoom’s M&A platform helps deals close 40% faster by

1. eliminating duplicate requests

2. providing a real-time, bird’s eye view of the entire process

3. focused analytics

4. eradicating the need for hundreds of back-and-forth emails 

6. improving collaboration between stakeholders

While FirmRoom can also be used for M&A, its scope goes a bit wider as it can be utilized for almost any data-sensitive application. 

For example, clients have successfully employed FirmRoom for corporate finance, fundraising, reorganization, bankruptcy filings, privatization, spin-off, exchange offer, divestiture, and procurement.

Additionally, FirmRoom has been used outside of the realm of finance.

In fact, FirmRoom has been put to use in the fields of law, biotech, real estate, medical research, life sciences, and hospital administration.

Overall, DealRoom is a VDR combined with a project management system; therefore, it is able to manage complex transactions such as diligence and integration processes. 

FirmRoom, however, is a VDR focused on file management making it more appropriate for smaller M&A deals as well as other applications.

Cost Comparison & Terms of Use

DealRoom starts at $1,000/month. 

This fee includes unlimited data and users - two areas its competitors traditionally use as fee traps.

FirmRoom operates on a monthly basis as well with a $500/month fee. 

This month-by-month format affords some flexibility and offers all of the aforementioned features related to scanning and uploading documents and media.

Both data storage management systems also include in their fees the ability to archive information (via DVD or USB), as well as overcharge protection.

DealRoom and FirmRoom have moved away from the archaic per page pricing method, making them more economical choices that allow businesses to accurately plan their expenses.

Collaborative & Administrative Features

When it comes to what the platforms can do, DealRoom stands out because at its core, it is designed to reduce fatigue and increase collaboration by using a document collection workflow that allows for multiple administrators and real-time activity reports.

Furthermore, the platform is Agile certified.

FirmRoom does not offer as many of the Agile features, however, FirmRoom does allow for activity tracking, bulk-uploading, and drag-and-drop support. 

In addition, both platforms are easy to use thanks to their intuitive designs.

In terms of features, DealRoom offers more, but both platforms are a step ahead of their competition, most of which do not offer such extensive attributes, ease of use, and strong analytics.

Security & Support

DealRoom and FirmRoom are on the same page when it comes to what they offer for security and support. 

Namely, both leverage AWS’s cloud platform - a platform that is globally hailed as a leader in security. 

In addition, watermarking and customizable viewing/downloading/printing privileges are two of their key security features.

Concerning support, both offer free 24/7 assistance and boast a greater than 99% guaranteed uptime.

Security is one of DealRoom’s and FirmRoom’s top priorities as witnessed by the  security features built directly into their platforms. 

Ultimately, you can consider these data rooms secure banks for your information as they follow the same security protocols.

DealRoom goes above and beyond what traditional VDRs offer and while FirmRoom may be more aligned as a VDR, the fact it is designed for enterprise application (and so easy to use) sets it apart. 

Within these platforms, your secure data can improve workflow, increase transparency, reduce distractions and inefficiency, and, essentially, enhance your way of doing business.

In closing, FirmRoom works well for smaller deals (<50M) where one does not face a complicated diligence and/or integration process. DealRoom, however, is designed to make complex deals simple with its Agile approach. 

Consequently, it is has been utilized for billion dollar transactions and is suitable for deals >50M where there is a greater need for diligence and integration process management.

By
Kison Patel

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